Sun Country Share Prices Jump After IPO
Twin Cities-based air carrier Sun Country Airlines saw its share prices grow by more than 50 percent after the airline officially went public this week.
The company initially priced shares at $24; by market close on Wednesday, the share price jumped to $36.38. Through its initial public offering of more than 9 million shares, the company raised a total of more than $218 million. In a statement on Tuesday, Sun Country said it will use the funds to “repay in full all amounts outstanding” on its federal coronavirus relief loans, along with expenses related to the IPO. All remaining funds will be used for “general corporate purposes,” the company said.
In an interview with CNBC, Sun Country CEO Jude Bricker said his airline has “been able to get sales back to what they were at pre-Covid levels.”
“We’re feeling really good about a recovery,” he told the news channel. Apparently, so are investors.
But it hasn’t been entirely smooth sailing for Sun Country; in 2020, the airline logged a net loss of more than $3.9 million. That’s down considerably from net income of $46 million in the prior year. Still, company officials are banking on a rebound in travel, especially for domestic flights.
Sun Country is one of the few Minnesota companies to go public within recent years. The most recent Minnesota company to file for an IPO was Jamf Holding Corp. in June 2020. Sun Country is an exception in another way: It’s the most recent airline to go public since Arizona-based carrier Mesa Air Group filed in 2018.